PROCESS OF STRATEGIC PLANNING

• Strategic Planning - refers to the systematic process of envisioning a desed future and translating this vision into broadly defined goals and objectives, which involves formulation of strategies and allocation of resources to achieve those objectives.
• Competitive Advantage - refers to the aggregation of factors that differentiate a small business from its competitors and gives ita unique and superior position in the market.
• Development of a Clear Vision and Translating It into a Meaningful Mission Statement - the first step in the process of strategic planning.
• • Vision - refers to how the entrepreneur sees the company he/she is about to put up in the future.
• • Mission Statement - refers to the basic description of the fundamental nature, rationale, and direction of the firm.
• Elements of a Mission Statement

  • The purpose of the business
  • The business the entrepreneurship is in
  • The values of the entrepreneurship
• Analysis of the Internal and External Environment of the Business - the second step in the process of strategic planning.
• SWOT Analysis - is an entrepreneurial tool used in assessing the firm’s internal strengths and weaknesses and the opportunities and threats in the external environment.
• • Strength - refers to a skill, competence, valuable organizational resource or competitive capability, or an achievement that gives the firm a market advantage.
• • Weakness - refers to something that the company lacks or does poorly or a condition that puts it at a disadvantage.
• • Opportunity - refers to the chance offered by the external environment to improve the firm’s situation significantly.
• • Threats - refers to a challenge posed by an unfavorable trend or development in the  external environment that might lead to the erosion of the entrepreneur’s position.
• Formulation of Business Goals - the third step in the process of strategic planning.
• Goals - are broad and long-term attributes that the business seeks to accomplish
• Strategy Formulation - the fourth step in the process of strategic planning.
• Strategy (Courses of Action) - is a designed plan which indicates how the entrepreneur will attempt to accomplish the goals with the resources available.
• Strategy (Courses of Action) - it defines the means on how the vision, mission, goals and objectives will be attained.
• Business Targets or Objectives - the fifth step in the process of strategic planning.
• Strategic Objectives - refes to the specific performance targets that the entrepreneurship hopes to accomplish. It states how the mission will be realized in a specific manner.
• In formulating an objective, it should follow the SMART + W Principle.
• • Specific - precise and spells out exactly what the entrepreneur wants to accomplish.
• • Measurable - quantifiable based on a scale of measuring the business’ performance.
• • Attainable - within the reach of the entrepeneur or the business.
• Realistic - focused on the outcome rather than the means of achieving them.
• • Time-Bounded/Timely - state when outcome is expected to be acheived and evaluated.
• • Written Down - recorded to ensure the objectives set would not forgotten and to serve as guide in pursuing the business.
• Strategy Execution Through Highly Defined Tactics - This is the stage when the high level plan is translated into more operational planning and action items. In this stage of the strategic planning process, specific methods or tactics are identified.
• Evaluation - the seventh and final/last step in the process of strategic planning.
• An evaluation plan should always be measured by evaluating the outcomes of the activities stated in it.
• Through evaluation, the management or entrepreneur is able to identify the sustainability of the strategic plan as well as the efficiency and effectivity of the plan in carrying out the firm’s activity in attaining its goals, mission and vision.
• Through evaluation, the management or entrepreneur is able to identify the sustainability of the strategic plan as well as the efficiency and effectivity of the plan in carrying out the firm’s activity in attaining its goals, mission and vision.
• Goal - a broad primary outcome.
• Strategy - the approach you take to achieve a goal.
• Objectives - a measurable step you take to achieve a strategy.
• Tactics - a tool; you use in pursuing an objective associated with strategy.
• Fundamental Strategies for Small Business

  1. Flexibility strategy
  2. Strategy of effectiveness as a higher priority
  3. Strategy of starting simple
• • New Business - refers to businesses operated for the first time by the small business operator.
• Strategy Concerns of Small Business - New Business

  1. Acquiring an existing business
  2. Organizing a new business
  3. Buying a franchise
• Strategy Concerns of Small Business - Old Business

  1. Segment Markets
  2. Efficient use of Research and Development
  3. Think Small
•  Think Small - profits and specialization vs sales growth and diversification